Godavari Biorefineries mops up over Rs 166 crore via anchor book, IPO to open on October 23

Godavari Biorefineries IPO

Ethanol producer Godavari Biorefineries has raised Rs 166.42 crore from 15 institutional investors via its anchor book on October 22, a day before the issue opening.

The company targets to mobilise Rs 554.75 crore through its initial share sale at the upper end of price band of Rs 334-352 per share. The issue will open on October 23 and close on October 25.

According to the filing to the exchanges on Tuesday, Godavari Biorefineries has finalised allocation of 47,27,980 equity shares to anchor investors at a price of Rs 352 per share.

ICICI Prudential Mutual Fund, HDFC Mutual Fund, Whiteoak Capital Mutual Fund and 360 ONE Equity Opportunity Fund were the biggest anchor investors in the company, buying 5.35 lakh shares worth Rs 18.85 crore each.

Goldman Sachs, 3P India Equity Fund, Chartered Finance & Leasing (backed by ace investor Madhusudan Kela), Franklin India, Bandhan Small Cap Fund, Edelweiss, Troo Capital, SBI General Insurance Company, and Buoyant Capital AIF acquired 2.55 lakh shares worth nearly Rs 9 crore each.

Societe Generale and Vikas Khemani-backed Carnelian Structural Shift Fund picked 1.42 lakh shares worth Rs 5 crore each in the company.

"Out of the total allocation of 47,27,980 shares to anchor investors, 23,74,218 shares were allocated to 6 domestic mutual funds through a total of 10 schemes," Godavari Biorefineries said.

The IPO is a mix of fresh issuance of equity shares worth Rs 325 crore, and an offer-for-sale (OFS) of 65.26 lakh shares worth Rs 229.75 crore.

Investor Mandala Capital AG will be exiting in the company by selling its entire stake of 49.26 lakh shares in the OFS. Promoters Somaiya Agencies, Samir Shantilal Somaiya, Lakshmiwadi Mines and Minerals, Filmedia Communication Systems, and Somaiya Properties and Investments will be other selling shareholders.

The company that makes bio-based chemicals, sugar, ethanol and power will repay its debt of Rs 240 crore out of total borrowings of Rs 748.9 crore through fresh issue proceeds. And the remainder fresh issue money will be used for general corporate purposes.

The Mumbai-based company with a bio-refinery capacity of 570KLPD for manufacturing ethanol supplies products to several industries such as food, beverages, pharmaceuticals, flavours & fragrances, power, fuel, personal care and cosmetics.

Equirus Capital, and SBI Capital Markets are the merchant bankers for the issue.